1. www.4Clicks. com The Efficient Construction Delivery Method For Facilities Repair, Renovation, & Sustainability Copyright 2015 – 4Clicks Solutions, LLC SABER, IDIQ, BOS, MACC, SATOC, MATOC

2. JOC Fundamentals JOC PEOPLEPROCESSRobust Cost DataTECHNOLOGY JOB ORDER CONTRACTING Create, Visualize, and Share Standardized, Accurate, and Reusable Information. Increase Productivity Full Transparency More Construction Projects On-Time / On-Budget

3. Process Supported by Technology & Robust Cost Data Core JOC Function 4Clicks TM Hard Copy/Online Books or Spreadsheets Cost Line Item Modifiers  NA IGE / Contractor Estimate Comparison  NA Apply / Manage JOC Co-efficients  NA Track/Mark Priced and Non-Priced Items  NA Apply / Manage JOC Co-efficients  NA Manage Contracts / Contractors Projects / Estimates  NA Locked Unit Price Book  Visual Estimating QTO 

4. The Feature List is MUCH Longer 4

5. The Evolution of JOC Software 5

6. What is The BEST electronic presentation of RSMeans Cost Data Software Technology and Training to efficiently and consistently deploy and manage Job Order Contracting (JOC) SABER, IDIQ … 6

7. The Cost Database – Exclusive 400,000 Line Items 20% of estimate costs exclusively represented in 4Clicks

8. Who Uses Building Owners, Contractors, and AE’s doing a lot of RSMeans-based and IDIQ line item cost estimating. Contractors, AE’s working with and hoping to work with and/or improve work on DOD/non-DOD Federal Government, State/Local/County Government, Education, Healthcare, or Airport/Transportation - Renovation, Repair, Sustainability, and Minor New Construction Projects #1 #2 Anyone sharing or collaborating on RSMeans-based line item cost estimates. #3 8 Over 85% of United States CONUS Air Force, and rapidly growing numbers of other DOD and non-DOD Federal Real Property Owners (DOE, DOI, FAA, GSA, NIH, VA …). #4

9. Enables Collaboration among Owners, Contractors, Subs, & AE’s. Enhanced 400,000 Line Item RSMeans Cost Data* Integrated Estimate, Project, Contract, & Document Management Automated Owner/Contractor Estimate Comparisons *Including Full Descriptions and Modifiers. References, Graphics, and Specifications are also electronically available. Exclusive Features of 9

10. Set Contract Coefficients Manage Multiple Contracts, Coefficients, Projects, Estimates Track and Report RSMeans Line Items and non-RSMeans Items (Priced and non-Priced) Specifications Linked to Cost Estimate (Summary and Detailed) Track Project Status – From Concept Through Warranty Additional e4Clicks Project Estimator Features 10

11. Software Overview 11

12. Visual Estimating / QTO e4Clicks Estimate Report Site Visit /PDF Electronic Takeoff RSMeans JOB ORDER CONTRACTING Counts Areas Lengths

13. Rapid Implementation Easy-to-use, Single seat or Network deployment Consistent Usage Best practice JOC/SABER IDIQ procedures embedded in software Transparency System-wide RSMeans-based UPB (North American Standard), or estimates with your own custom guide (single trade IDIQs) Collaboration Built-in estimate/project/document/contract management Performance Gains Reuse estimates Benefits of 13

14. e4Clicks BASIC Targets Sub-Contractors who estimate and don’t require contract, document, or project management features. Includes the Basic Version of eTakeoff. e4Clicks PROFESSIONAL For General Contractors and Sub-Contractors who require multiple project management, document management, contract management, advanced estimating features, exporting to Adobe PDF and Microsoft Excel importing other external databases. Includes the Pro Version of eTakeoff. e4Clicks PREMIER For Owners to estimate and manage entire contracts or programs in a single product. Premier is used through-out the country on single and multiple award contracts (MACC, MATOC, JOC, SABER, BOA, BOS, etc). Estimate Comparison and Technical Evaluation features are included in this version. Includes the Premier Version of eTakeoff. Subscription Pricing Model Software Versions 14

15.  Studies have readily demonstrated the errors and lack of productivity related to spreadsheets – date entry and formula errors, costly data maintenance, lack of collaboration, and miscommunication.  RSMeans Online, CostWorks and e4Clicks Project Estimator are NOT competitive. CostWorks/RSMeans Online deliver excellent electronic access to RSMeans Cost Books without modifiers, enhancements, etc. e4Clicks Project Estimator is an advanced and collaborative cost estimating, project management, contract management, document management package inclusive of visual estimating. Are you using SpreadSheets, RSMeans Online, CostWorks TM, or other techniques? 15

16. What is JOC? An Indefinite Delivery / Indefinite Quantity (IDIQ) type contract for the procurement of renovation, repair, maintenance, construction services Projects that involve little or no design or engineering Minor maintenance (painting, carpet replacement, ceiling tile replacement, etc.) Repair or replacement (roofs, parking lots, underground utilities, doors, windows, etc.) Upgrade or replacement (HVAC, plumbing, fixtures, etc.) Competitive pricing through the use of a competitively-bid coefficient applied to a unit price book (UPB) like RS Means 16

17. What is JOC? Duration; 3-5 Years Contract Size:$2-$350M+ Task Order Size:$100k-$500k+ Set Aside (8a, SBVOSB, VOSB, WBE) or Unrestricted 17

18. JOC: Key Characteristics/ Requirements Collaboration Shared Risk/Reward Unit Price Book (UPB)* On-demand Services Independent Government Estimates * “Open JOC” / Hard Bid is NOT Job Order Contracting 18

19. Unit Price Book - UPB Cost Estimating Catalog Detailed Unit Price Line Items 80%+ RSMeans (Majority RSMeans Facilities, Some include Master Composite) Priced (P) vs. Non-PrePriced (NPP): (10% NPP Max.) Electronically Available with JOC-specific Software*, as specified in Solicitation *Spreadsheets are NOT recommended. 19

20. JOC Co-efficient: 0.80 to 1.20 (average) COEFFICIENT X TOTAL OF RSMEANS LINE ITEM VALUES (for estimate(s)) = TASK ORDER PRICE Coefficient typically include all costs related: (a)direct and indirect labor, fringe benefits, overhead, G&A expenses, profit, material, equipment, other direct costs, insurance, freight, handling, transportation, inspection, testing, operation and maintenance manuals, bonds, etc. (b)federal, state, and local taxes, (c)all applicable fees permits, licenses, and (d)any miscellaneous charges. Contractor typically may also use the City Cost Index (example RSMeans CCI / localization factor) when preparing estimate 20

21. JOC Benefits Saves time and increased responsiveness. Flexibility to meet variable work flow and match project scope to budget. Improved quality of delivery and results due to best value selection and incentivized contract. More cost-effective, value-added service, and, reduces change orders and claims. Develops Owner/Contractor partnership, longer term relationships, and adaptability to demanding environment (security, ongoing operations etc.) Maximizing opportunities for disadvantaged and small business. Faster response to warranty issues and any problems. Streamlined procurement process. 21

22. Typical Task Order Process Contracting Officer (CO) or Contracting Officer’s Representative (COR) will issue the Contractor a Request for Offers (RFO), which includes a Statement of Work (SOW) and any other supporting Documents. Upon receipt of the RFO, the Contractor shall attend a site visit, review the RFO, and meet with the COR to thoroughly discuss all conditions and details of the work. Contractor has “ten (10) calendar days”, unless otherwise agreed upon, from the time the RFO is issued to respond. The CO may accept the Contractor’s task order estimate without further discussion or negotiation on any item. Upon acceptance of the offer the CO will issue the job order at a firm fixed price. 22

23. The JOC Team Customer/Facilities Owner/Engineering Owner/Contracting Contractor/Subcontractor The purpose is to create a long term working relationship with the Contractor who becomes familiar w/ the Owner’s, facilities, personnel and protocol and are “pre-badged: in many cases”. 23

24. Low-bid Contractor? 24

25. Smaller projects easily can take up to 1 year to procure Up to 22% of project costs are consumed in design and procurement Change orders can increase project costs by 50% Claims and litigation are the “Status Quo” Large backlogs and inefficiencies negatively impact an organization's mission. A World Without JOC 25

26. Federal Government  Army  Navy  Air Force  DOE  FAA  Veteran’s Administration  GSA / Department of Homeland Security  US Postal Service Higher Education  California University System  University of New Mexico  Northern Arizona University  City Colleges of Chicago  Georgia Tech Healthcare  Harris County Hospital District  University of Washington Hospital System Transportation  Los Angeles World Airport  Phoenix Metrorail  DFW Airport State/County/Local Government  Commonwealth of Massachusetts  State of Washington  State of Arizona  City of Phoenix  City of Houston  Baltimore Housing Authority  Los Angeles County (DPW) K-12 Independent School Districts (IDSs)  Hartford County Schools  Loudon County Schools  Dallas Public Schools  Houston ISD  Mesa Public Schools (AZ) Who is using JOC? (partial listing) 26

27. Faster project delivery (3-9 months less) Streamlined engineering and design Cost visibility/transparency Better contractor performance Integrated Team - Partnering/collaborative owner/contractor relationship More opportunities for local business Effective use of year-end funds Higher overall satisfaction* JOC Benefits / Results *Mulcahy, Francis S. The Effectiveness of Partnering and Source Selection in Job Order Contracting. Master’s Thesis, University of Washington, 2000. 27

28. JOC / non-JOC Timeline Comparison 28

29.  Long-term contracts foster a higher level of investment in making the working relationship yield successful results  A JOC program not a project  Allows for the development of a trusted partner JOC - Establishing a Fiscally Beneficial Relationship 29

30. Pricing structure relies on a Unit Price Book ( UPB ) For example - Standardized, but enhanced 400,000 line item RS Means Cost Data Custom and/or localized UPB and/or line items. Competitively-bid coefficient (multiplier, factor) establishes pricing at the outset of the contract. Coefficient includes all costs including materials, labor, overhead, profit, and sometimes bond and tax. Example: 1 SF Drywall $1.00 Coefficient.92 -0.08 Contractual Price $0.92 The Pricing of JOC Projects 30

31. Delivery orders are firm fixed price, lump sum UPB is an estimating tool Unit price proposals represent contractor’s committed price—it converts to lump sum Change orders rare, and with consistent pricing structure Brings IPD/CM advantages to smaller projects but in an efficient way with an at- risk incentive to perform. 31 JOC Delivery Order Pricing

32. Items not appearing in the Unit Price Book are considered Non Pre-priced Items (NPP) Typical NPP options: NPP coefficient serves as a markup on three transparent subcontractor bids NPP markup can be set per contract provisions Once a new unit price is negotiated it can be incorporated into the contract Some contracts will prohibit or limit NPP items as a percentage of delivery orders. Sample Contractor Bid: UPB Coefficient.92 applied to line items NPP Coefficient 1.18 applied to actual sub costs Non-priced Items 32

33.  Either the Unit Price Book or the Coefficient is usually adjusted annually  Dynamic cost databases generally maintain the same coefficient  Customized price books typically adjust coefficient annually according to an industry benchmark (RSMeans City Cost Index-CCI), and/or add customer-specific unit price line items  Goal is to help contractor and owner manage risk Dynamic vs. Static Costs 33

34. Change Orders are rare in JOC Owner-initiated Truly unforeseen conditions UPB governs original scope of work and scope added after Puts owners at an advantage when directing changes in the work Change Orders and JOC 34

35. Analyzing potential JOC volume Review historic project data (2-3 years) and reconcile with budget projections. Segregate projects by size, location, type, etc. What will your JOC “bandwidth” be? All-inclusive, or selective? As defined by scope, or urgency. Size limits? Consider in-house capabilities, other contract vehicles, and political influences Define contract footprint, including potential regionalization Single or multiple award Numbers to consider. $3M—minimum annual volume for standalone JOC program $6M—maximum efficiencies are achieved, allowing addition of support staff Many owners with less volume can access JOC through purchasing cooperatives Owners Preparing for JOC 35

36. Assess in-house capabilities Project Management Capacity Skillsets Line-item estimating, or ability to review estimates, Proactive definition of scope, In-house maintenance crews Training Plan How will JOC interface with your design professionals? Flowcharting how JOC process will interface with purchasing, management and board approvals One Owner’s Management Plan: Each PM manages 15-20 projects simultaneously, up to 50 per year Owners Preparing for JOC 36

37. Company culture of high performance needed to succeed in JOC? Ability and capacity to create productive teams? Proactive rather than reactive? Line item estimating capabilities? Contractors Preparing for JOC 37

38. Considerations that drive the coefficient:  Contract volume (higher volume = ⇩ )  Geographic dispersion of projects (further apart = ⇧)  Type of work  Average size and size range of delivery orders  Three S’s: Supervision, Security, Safety  Contract Administration Cost  For RS Means, Division 1 provisions and column used (Bare Costs vs. O&P column)  UPB used  Marketing costs  Look at historic coefficients, but beware of changes that can impact the coefficient! Contractors Preparing for JOC 38

39. Bidding the Coefficient: Historic Costs Reconcile 2-3 historic projects where final costs are known against a line item estimate generated from UPB  Focus on Divisions 2, 9, Mechanical and Electrical? Program Costs Calculate total personnel and overhead costs to manage the program, reconcile with typical project costs and then reconcile unit costs with select line items Contractors Preparing for JOC 39

40. Once a JOC Program is in place, client project demands/requests happen over the contract term. This starts the JOC Process: The JOC Process 40

41. Scope Variability - Detail of Owner scope preparation varies according to:  Owner preference and skillset  Owner people resources available  When in planning cycle project was identified for JOC Owner Provides: Project Need, Target Budget Owner Provides: Defined Scope Document Owner Provides: Complete Bid Documents More turnkey, contractor led More proactive owner involvement Range of Owner Participation The JOC Process - SCOPE 41

42.  Typically within days  Collaborative Process  Goal of capturing every necessary component of work Site Visits 42

43. Demo / dispose of 3 existing lights Reuse existing circuit for new lights. Remove & replace 2 existing HVAC grilles Install gyp ceiling at 8' 8" with 4 new surface mounted explosion proof lights. Relocate existing smoke detector to new ceiling Demo CMU for 42" opening min. (exist opening +/- 36") Demo & dispose of existing metal partitions and replace with new 4" CMU covered completely with ceramic tile, with one block scupper at bottom of each Remove and reinstall existing 3 urinals and 2 commodes Demo ceramic tile, floors and walls, (exist ceramic on walls is approx. 8'-0" high) Owner/Contractor-Joint Scope Development /Documentation 43

44. Performed in- house Included in coefficient Will engage design professional when needed  Major building system engineering  Structural  Life-safety Targeted or Incidental Design 44

45. Presented to owner for approval Important confirmation step for aligning vision and expectations prior to proceeding with labor-intensive line item proposal Scope and Work Plan Submitted to Owner 45

46. The JOC Process - PROPOSAL 46

47.  Generation of the line item estimate  Assurance of a fair price: – Are the line items appropriate? – Are the quantities correct?  Owner has to understand the process and have faith that it provides competitive value Proposal Format 47

48. 48

49. Project Execution 49

50. What JOC is NOT A Simple Way to Bypass Procurement Dialing for Dollars / Hard Bid Antagonistic 50

51.  JOC is a form of IPD – Integrated Project Delivery  Emphasis on Pricing Transparency  Integration Across the Building Lifecycle  Technology Changes: – JOC-specific software deployed via Cloud – Cost Databases and Estimating Approaches will further evolve to reveal lifecycle costs  “Greater Good” goals – Small and disadvantaged business utilization – Sustainability The Future of JOC 51